Poundland: Union to enter into talks about planned closure of stores and Bilston distribution centre
“This is clearly devastating news for our members in Springvale" - union bosses have said as they prepare to enter into consultation about the proposed closure of Poundland's Bilston distribution centre.
The centre, which employs around 250 people, has been earmarked for closure as part of restructuring plans following the sale of the discount retail chain to American investment firm Gordon Brothers.
Worried workers told the Express & Star on Monday that they'd been informed the Springvale Bilston Distribution Centre would likely close in early 2026 as part of the plans to save struggling Poundland.
The retailer confirmed Springvale, along with a distribution centre in Darton near Barnsley in South Yorkshire, are proposed for closure and today Poundland managing director Barry Williams confirmed there will be 68 store closures as part of the plan to make the business financially sustainable after an extended period of under-performance.
Retail trade union Usdaw has now confirmed it will enter into consultation talks about the proposed closure of stores and distribution centres.
Bally Auluk, Usdaw national officer, said: “Poundland has briefed Usdaw that they are now seeking permission from the court and UK creditors to close 68 stores, which they say have ‘no route to a return to profitability’ and streamline their distribution operations by closing the Springvale and Darton sites and transferring the work to existing facilities in Wigan and Harlow.
"We don’t at this stage know which stores are proposed for closure and we are aware that in the longer term the company could axe up to 150 stores.
“This is clearly devastating news for our members in Springvale and Darton distribution centres and a very worrying time for those working in stores.
"I am meeting the company this week to establish the process of meaningful consultation, as required by law, and establish which stores are under threat. In the meantime, we are providing our members with the support, advice and representation needed at this time of uncertainty.”
Court permission is now being sought for the proposed closures and business restructuring plan following the sale of Poundland by previous owners Pepco Group to US based Gordon Brothers.
The legal process could run through to late summer, the union said, and its expected that the full turnaround plan could lead to a reduction in stores from around 800 to between 650 and 700.
Mr Williams at Poundland said the proposed store and distribution centre closures were "sincerely regrettable" but necessary to secure the future of the business and he added: “It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
The business, founded by Steve and Keith Smith from Willenhall, has been struggling since the pandemic due to the rise in online shopping and in the face of significant competition from stores such as B&M and The Range as well as budget supermarkets.
